Toyota Kirloskar is a joint venture between Japanese auto major Toyata Corporation and the Kirloskar group. It was set up with a paid-up capital of Rs 700 crore.

The company, located on the outskirts of Bangalore, expects to post a 57 per cent rise in revenues to Rs 2,700 crore in the current financial year. In the first nine months (April- September) of the current financial year it has sold 5,225 sedans and around 15,000 units of utility vehicles but expects sales to pick up steam in the fourth quarter.

The car maker had also an upward revision of sales growth after the government lowered the production tax on cars and utility vehicles in the budget for the financial year to March 2004.

The government, as part of an overall tax reform plan, had also reduced the peak rate of customs duty to 25 per cent from 30 in this year’s budget and lowered production tax to 24 per cent from 32 which has fuelled a demand surge.